Yellow Brick Road removes savings requirement for first-time home buyers
An up-and-coming non-bank lender is aiming to offer first-time home buyers a more competitive option by removing the need for home loan applicants to show proof of savings.
The new First Step loan product from Yellow Brick Road, a venture by The Apprentice host Mark Bouris, will target mortgage applicants who are either gifted a deposit from their parents or inherit cash, the Daily Telegraph reported.
The move may interest first-time buyers looking to compare home loans, particularly as many lenders make applicants submit at least three months of bank statements to show a savings pattern.
Speaking to the newspaper, Mr Bouris said the First Step offer aimed to remove a major hurdle that is presently stopping thousands of Australians from buying property.
"Since the First Home Owners Grant was reduced, banks knocked out a lot of first home owners from applying because they are relying on a combination of the grant and a gift from parents or someone else," he said.
"For our loans, if you have inherited the money, won it on Lotto, or you received a great tax return, it doesn't matter, as long as you've got a deposit and can service it," added the entrepreneur.
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